Management of communities in Poland and their financial independence

Economic Annals-ХХI: Volume 142, Issue 7-8(1), Pages: 103-107

Citation information:
Grzebyk, M., & Musiał-Malago, M. (2014). Management of communities in Poland and their financial independence. Economic Annals-XXI, 7-8(1), 103-107. https://ea21journal.world/index.php/ea-v142-26/

Mariola Grzebyk
PhD (Economics),
University of Rzeszow
2 M. Cwiklinkiej Str., Rzeszow, 35-601, Poland
mgrzebyk@op.pl

Monika Musial-Malago
PhD (Economics),
Cracow University of Economics
27 Rakowicka Str., Cracow, 31-510, Poland
musialm@uek.krakow.pl

Management of communities in Poland and their financial independence

Abstract. Every local government unit should possess particular financial independence that allows it to function efficiently. Finances are management element that plays important function in realizing current and developing future aims. Financial economy of self-government can be characterized by limited number of financial sources. That is why the purpose of the article is analysis of financial situation of three types of communities in Poland: urban, partially urban and rural, and rural ones in 2007-2012. The authors used several key indices and undertook a study of mentioned communities in Poland and conducted an assessment of their financial independence. Rationalization of community financial economy requires maximum public sources adjusting to realize the tasks with the highest possible quality (important is adjusting especially to socially accepted aims and tasks).

Results show that financial situation of communities in Poland is worsening, however, is not critical to urge serious financial policy decisions. The best situation have urban communities – the ones to which a city is a factor of developing. Outcomes of survey present worth-while information to optimize usage of limited financial sources in communities and make rational decisions connected with efficient financial management. They constitute a tool to verify the needs of community, as well as enable to measure local activities.

Keywords: Management; Financial Independence; Municipal Government

JEL Classification: O18; P43; R51

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Received 24.05.2014